How We Pump Up the Costof Student Loan Debt

We offer full-disclosure student loans for every academic dream. We allow you to think big and party big, but you will also be paying us back big for a decade or two after leaving school.

Our Student Debt Consultants Are Paid on Commission

Please talk with one of our Student Debt Consultants, who will explain all the options and the easy application process. Call 001-100-1111 toll-free. These people really are helpful—because they get paid only if you buy our debt.

We Encourage Students to Borrow More Than Needed

Our Equal Opportunity Student Debt program allows you to borrow up to 100% of your school-certified cost of education, including generous amounts for your wardrobe, bar bills, and spring break bacchanals.

We Play Bait and Switch With the Interest Rates

We offer great interest rates. Fixed rates are currently as low as 5.75% APR, but that is a ploy, only for students who have already interned at Facespook or Googledom and have a promising future. Others will pay between 6 and 12% APR, whatever we choose.

Repayment Can Be Delayed but We Compound the Interest

As a courtesy, no payments are due until 3 months after you leave school, but we charge interest from the day we disperse
the first dollar and it compounds for the whole time you are in school and
thereafter.

We Allow Long Repayment Periods

We allow you to control the repayments after leaving school. Choose a repayment period from 5 to 20 years. The longer the period, the lower your monthly payments but the higher your interest payments and our profits. It’s your choice.

Repayment Is Required Regardless of the Borrower’s Circumstances

Note that the repayment must start 3 months after you leave school whether or not you learned anything, completed the program, or are employed.

Unasked Questions About Student Loan Debt

Ignorance is bliss—until reality catches up to clients. Here are questions that hardly anyone asks about student loan debt but millions should be considering.

How Much Student Loan Debt Is Available?

Throughout our great country, Americans now have $1,200,000,000,000 of student loan debt, almost double the amount they had in 2008.

Is That a Problem?

Not for the equator. But the average borrowing student has nearly $30,000 in debt when graduating with a baccalaureate degree. At 6.5% interest and 10 years to repay, the payment on this would be $341.64 per month, in after-tax dollars. Half the baccalaureate students would be paying more. That reduces a young adult’s ability to save for the unpleasant surprises of life, starting a family, and his or her own retirement.

How Did This Happen?

Many factors contributed: More people going to college; postsecondary education costs rising faster than wages; unflagging demand for private prestigious colleges that cost twice what good public institutions cost; a mistaken belief that all postsecondary education provides a positive return on investment; and slower repayment of the loans.

If Education Is Not Always a Good Financial Investment, Why Do Banks Sell Student Debt to Almost Anyone?

Simple: We make money if they repay the debt as promised, and we make even more money if they are late on payments, allowing us to add penalties and compound the interest, ballooning the amount owed.

Don’t Some Students Default?

Some try to default, but under U.S. law student loan debt is super sticky and cannot be discharged by bankruptcy. So when a student defaults, we send the debt to our collection subsidiary, which puts a 15% lien on the student’s paycheck, and thereafter only 80% of each loan payment goes to reducing the amount owed and the other 20% goes for the collection services, leaving the student squeezed and paying almost forever.

So Banks Welcome Defaults?

More than that, we have a Universal Default Clause in our debt agreement that triggers them, a clause most students don’t bother to read. In 2010, the Congress outlawed these clauses for credit cards but they are still permitted for student loans.

Isn’t There Some Way That Students Unable to Repay Can Be Excused?

Look, when these people rented the money from us, they promised to repay it with interest. We’re not a charity. There are, however, three ways a few borrowers do avoid repayment. See below but please don’t tell anyone.

Note: The NakedTruthBANK.com policies and practices for student loan debt are typical of those for banks and credit unions. The several federal direct student loan programs have somewhat less onerous conditions.